Ex-China cold rolled coil (CRC) prices have increased over the past week, based on the news of production cuts to be implemented from mid-August until September 3 and the rises seen in coke and coking coal futures prices again earlier this week. Nevertheless, most buyers have been refusing to accept any price increases, seeing that in early August crude steel production in China actually rose.
Ex-China HDG offer prices have been heard at $560-565/mt FOB this week, moving up by $10-15/mt since last week, though the tradable levels for ex-China CRC have not been above $545/mt FOB. A number of steelmakers suspended giving offer prices as higher levels were not accepted by customers, and they are waiting for a clearer trend later this month.
During the given week, the average CRC prices in the Chinese domestic market have edged up slightly amid decreasing inventories. Meanwhile, major Chinese steelmakers, including Baosteel, Anshan Iron and Steel, Bengang and Lingyuan Steel, have raised their CRC prices by RMB 300/mt ($42/mt) for delivery in September, bolstering market sentiments. HRC futures prices have fluctuated in a limited range (excluding the declines today, August 14), reflecting the slack demand from downstream users amid high summer temperatures and the lack of solid support for the steel market. It is thought that CRC prices in the Chinese domestic market will likely move sideways in the coming week.
Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 3,627/mt ($508/mt) ex-warehouse, increasing by RMB 10/mt ($1.4/mt) week on week, according to SteelOrbis’ information.
As of August 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,451/mt ($484/mt), remaining unchanged since August 6.
